BVRLA calls for used electric vehicle tax relief
The British Vehicle Rental and Leasing Association (BVRLA) has called for urgent support for the UK’s used electric vehicle market.
In an open letter to Chancellor Rachel Reeves ahead of this week’s spending review, the BVRLA has said that new tax relief measures are critical to revive a flagging used EV market.
The value of used EVs depreciate much faster than petrol and diesel models with prices falling by as much as 50% in just two years. The BVRLA believes this is unsustainable and warns that unless the used electric vehicle market stabilises with new government-led incentives, it will be impossible to achieve net zero targets.
It said: “A weakening used BEV market poses a significant risk to the UK’s net zero targets, economic growth, and the broader transition to electric vehicles.
“The letter outlines the stark reality: used BEVs are depreciating much faster than petrol and diesel vehicles, with values dropping by over 50% in two years. This undermines leasing and financing models and threatens the affordability and accessibility of new BEVs.”
Grants and tax relief
The BVRLA continued: “Given the close interdependence between the new and used markets, the BVRLA is calling for a package of time-limited, targeted interventions – including grants or tax relief for used BEV purchases, and measures to stabilise residual values. The association has shared detailed proposals with Treasury officials, including a joint paper with the Green Finance Institute outlining a potential Market Stabilisation Scheme.
“The message is clear, without a stable and functioning used BEV market, the UK’s road transport decarbonisation transition could falter. The Spending Review is seen as a key moment to restore confidence and ensure the transition delivers equitable economic and environmental benefits.”
